Overview
- Aggregate homeowner equity for mortgaged properties fell 2.1% year over year in Q3 to about $17.1 trillion, though the average borrower still holds roughly $299,000 in equity.
- Approximately 1.2 million homeowners, or 2.2%, were underwater at quarter’s end, an increase of 216,000 from a year earlier that Cotality says has been gaining steam.
- Loan-to-value ratios climbed, with more owners in the 85%–94% LTV range, reflecting smaller down payments, piggyback financing and increased equity extraction.
- Equity losses were heaviest in Florida (about $37,400), the District of Columbia (about $35,500) and California (about $32,500), while Connecticut, New Jersey and Rhode Island posted gains.
- Cotality cautioned that outcomes for highly leveraged borrowers will depend on the strength of the economy and job market as home-price growth cools.